Growth in the form of GDP figures
The latest GDP data show that there are six provinces breaking through the $10,000 per capita GDP level now, which means they are entering "developed" status according to the World Bank. However, without improvement in the common people's welfare, such "development" is not real and is only a figure in a report, says an article in Beijing News Daily.
Excerpts:
Per capita GDP is a major indicator to measure the macro-economy in a country or region. Usually, it gets more attention than the overall GDP since it is closer to the real development level. For instance, China ranked second in global GDP, while in 2011 China's per capita GDP was only 89th worldwide.
However, whether the latest per capita GDP data show real "developed status" is worth thinking about.
First of all, the developed provinces are all supported by undeveloped regions in China, for example through the transfer of labor force and natural resources, which largely reduces the economic costs for the advanced cities. Moreover, even in those advanced provinces, there are some poor areas. So not all people are enjoying the achievements of the developed status.
Secondly, per capita GDP can only explain limited situations. Theoretically, such a figure is more meaningful by deducting the environmental pollution, losses in fitness and resource consumption. For instance, nowadays many cities are shrouded in haze, caused by a development model only caring about economic growth at the cost of air pollution. Although there is huge input to improve the environment, these inputs are not reflected and calculated in the per capita GDP.
Thirdly, the figures have not transferred to residents' benefits. Some experts believe that a large amount of wealth has increased in the field of non-resident benefits, with less of a rise in residents' income. Besides, the increase in GDP is mainly fueled by investment. As the economy is slowing down, the GDP is driven by government investment and expense, which cannot be sustainable in the future.
So we should be rational when analyzing these numbers, and it is not wise to be over excited about the growth, but deep introspection is needed.
